In short
- Realize is a software tool, not a CPA firm, law firm, tax preparer or financial advisor, and it gives no tax advice.
- Every figure is an estimate. You or your accountant review it before you file.
- Section 1256 is one way to report these contracts, and whether they qualify is unsettled.
1 What Realize is
Realize is a software tool. We are not a CPA firm, law firm, registered tax preparer, or financial advisor. Nothing produced by Realize constitutes legal or tax advice.
2 How our figures are computed
Our outputs (including refund and savings estimates and the §1212(c) carryback analysis) are computed from data you provide and from publicly known IRC provisions. Their accuracy depends on the completeness of your imported trades and on your reported bracket / prior-year figures. You or your accountant are responsible for reviewing every figure before filing. Filing documents (such as Form 6781 for the Section 1256 route) are not available yet; they are coming in time to file your 2026 taxes, and this section will cover them once they ship.
3 Illustrative figures
Refund and savings figures shown anywhere on this site are illustrative. Your actual result depends on your full return, your prior-year filings, and IRS processing.
4 Carryback claims
Carryback claims under §1212(c) require amended returns and IRS processing time; refunds are not guaranteed.
5 Section 1256 treatment
Section 1256 treatment applies to contracts that qualify under §1256(g)(7). Kalshi and Polymarket US event contracts trade on CFTC-designated contract markets, which is the basis for reporting them under Section 1256. Whether they qualify is unsettled, so Realize prices Section 1256 alongside the other treatments and leaves the choice to you and your advisor. Tax treatment for offshore venues, including the offshore Polymarket exchange (polymarket.com) for US persons, is materially different and not supported by Realize at this time.